Living Wage Series - Madagascar - January 2018 - In Malagasy Ariary, per Month

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator uses prices from the Cost of Living Survey to calculate Living Wage in more than 60 countries. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, tax deductions and other necessities.

The following table summarises the varying expenditure and income needs for the three commonly occurring family household compositions.

Expenditure and Living Wage calculation (monthly rates in Malagasy Ariary)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 350400-450100 215600-277000 53900-69300
Housing 250000-400000 250000-400000 114900-137100
Transport 40000-56000 40000-56000 20000-28000
Health 35000-67500 35000-67500 8750-16900
Education 30000-80000 30000-80000 0
Other costs 35300-52700 28500-44000 9880-12600
Total Expenditure 740700-1106300 599100-924500 207430-263875
Net Living Wage 389842-582263 332833-513611 207430-263875
Gross Living Wage 428800-640500 366100-565000 228200-290300

Note: For more details see Living Wage FAQ.


Family Living Wages (monthly rates in Malagasy Ariary)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of most common family household compositions and under different assumptions about working hours.

  from-to
Typical family (two parents + 4.5 children, 1.9 working) 428800-640500
Standard family (two parents + 2 children, 1.8 working) 366100-565000
Two parents and two children, 2 working 329500-508500
Two parents and two children, 1.5 working 439300-678000
Two parents and two children, 1 working 659000-1017000
Two parents and three children, 1.9 working 379600-577400
Two parents and four children, 1.9 working 412400-619500
Single-adult without children, 1 working 228200-290300

Note: Results in the table are rounded.


Living Wages in Context (monthly rates in Malagasy Ariary)

The Minimum Wage is a national legally binding obligation on employers which often make no reference to a living standard. Living Wage describes the adequate living standard. The common goal of the many living wage campaigns currently taking place all over the world is to lift Minimum Wages levels to those of the Living Wages. WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators including prevailing wages of workers over recent years.

  2015 2016 2017 2018
Minimum wage 133013 144003 155523 155523
Living Wage - Single Adult .-. .-. .-. 228200-290300
Living Wage - Typical Family .-. .-. .-. 428800-640500
Real wage of low-skilled worker 113600-196000 211400-320500 249100-373700 217800-326500
Real wage of medium-skilled worker 259600-392900 321500-461300 337700-471300 337500-486700
Real wage of high-skilled worker 462200-735500 517600-795700 554900-821000 542400-833400

Note: Table shows the lowest monthly Minimum Wage in a country, when available. Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages. Results in the table are rounded.


Food basket and food prices in Malagasy Ariary

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food itemGrams per dayEnergy (kcal)Price per kilo
Wheat, barley and cereals products 26 72 1000-2000
Rice 293 1087 1400-1500
Meat (beef, pork, poultry) 46 89 8000-9000
Oils (soyabean, olive, palm) 6 56 4500-5000
Sugar (Raw Equivalent) 33 73 2400-2800
Maize and products 51 153 1200-2400
Milk - Excluding Butter 71 45 1800-2400
Vegetables, Other 43 10 1000-1200
Potatoes and products 16 11 1000-1400
Butter, Ghee 1 9 10000-16000
Groundnuts (Shelled Eq) 5 8 2000-4000
Pulses, Other and products 1 4 1500-2500
Cassava and products 355 317 600-1000
Egg (price per 10 eggs) 2 3 3500-4000
Sunflowerseed Oil 0 2 5200-6000
Fish products 13 9 8000-10000
Beer 14 6 4000-4400
Sweeteners, Other 1 1 2500-3000
Beans 9 29 1200-2800
Sweet potatoes 62 60 800-1000
Bananas 40 24 1000-1200
Soyabeans 0 0 2500-4000
Apples and products 1 0 1600-2400
Tomatoes and products 4 1 1500-2000
Onions 1 0 1800-2500
Oranges, Mandarines 11 3 2400-3000
Peas 2 6 2500-2500
Roots, Other 15 14 1500-2000
Seeds and kernels 0 0 9000-10000
Wine 1 1 13300-16000
Cream 0 0 6000-14900
Olives (including preserved) 0 0 15000-15000
Honey 1 2 12000-12000
Citrus, Other 0 0 2500-3000
Lemons, Limes and products 1 0 2000-3000
Tea (including mate) 0 0 5600-6000
Grapefruit and products 1 0 1500-3000
Coffee and products 6 3 5000-8500


WageIndicator Living Wage background:

The WageIndicator Living Wage is set to provide acceptable living standard to a family of a particular size. WageIndicator presents Living Wages for several household types and working hours which reflect the most frequently found real situations in which people have to make a living: 1. Typical family Living Wage is a baseline estimate that respects the country specific conditions. Typical family is comprised of two adults and the number of children is given by country specific fertility rate (the average number of children a woman is expected to have during her lifespan). One adult is working full-time and the working hours of second adult are approximated by national employment rate. The total income earned by two adults paid living wage is sufficient to reach adequate living standard. 2. Standard family Living Wage is estimated for a family composed of two adults and two children (referred to as family 2+2). Living wage is calculated under different assumptions about working hours. These include that both adults work full-time (family employment rate is 2), or at least one adult works part-time or half-time (family employment rate is 1.8 and 1.5), or one adult does not work at all (i.e. patriarchal model with family employment 1). Alternatives refer to trade-offs between leisure and work and define what living wage represents. In every case the total income earned by two adults paid living wage is sufficient to reach adequate living standard. 3. Extended family Living Wage includes family with three or four children. One adult works full-time and the work intensity of second parent is approximated by national employment rate. 4. Individual Living Wage represents an acceptable standard of living for a single individual working full-time.

Data sources: WageIndicator Cost of Living Survey, World Bank Databank Fertility rate 2010-2014, ILO Estimated participation rate in 2017, FAO Food balance sheet in 2013.

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